The Ludhiana Cycle & Parts Manufacturers Association (LCPMA) has hailed the government’s decision to reduce Goods and Services Tax (GST) on bicycles from 12 percent to 5 percent, describing it as a landmark reform that will make cycling more affordable and spur industry growth.

Prince Bansal, president of LCPMA, said the reduction will directly benefit both consumers and manufacturers. “This historic decision will provide significant benefits to the entire bicycle industry and the public at large as it will lead to affordable mobility. Reduction in GST will make bicycles more economical, thereby increasing accessibility for common citizens, students, and daily commuters. Also, the decision will boost sales, encouraging growth of manufacturers, suppliers, traders, and allied sectors,” he said.

Affordable Mobility and Industry Growth

According to the association, the tax cut will make cycles more accessible for households that depend on them for daily transport, particularly in rural and semi-urban areas. The move is expected to stimulate demand across segments, giving a much-needed push to small and medium manufacturers in Punjab’s cycle hub and beyond.

The LCPMA noted that greater demand would also encourage ancillary businesses, from component makers to traders, creating a multiplier effect across the value chain.

Industry leaders believe that the surge in sales will translate into fresh employment opportunities, especially in labor-intensive units. "With Ludhiana being one of the largest cycle manufacturing clusters in Asia, the benefits of increased demand are likely to be felt across thousands of small workshops and enterprises" said Bansal.

The association also underlined the environmental and health impact of the measure. Promoting bicycles as a low-cost, eco-friendly mode of transport aligns with India’s sustainability goals, encouraging a shift towards green mobility and healthier lifestyles.

Industry Thanks Government for Reform

Expressing gratitude to policymakers, the LCPMA said the decision reflects the government’s recognition of cycling as an essential mode of transport for millions of Indians. “On behalf of the entire cycle industry, we thank the government for this progressive step which will go a long way in supporting the industry and promoting cycling culture in India,” the association stated.

With the GST relief now in place, cycle manufacturers are optimistic about expanding production, increasing affordability, and strengthening India’s position as a global hub for bicycle exports.

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